The Star Entertainment Group’s proposed exit from its stake in the AU$3.6 billion Queen’s Wharf Brisbane development has hit a critical juncture, after its joint venture partners issued notice to terminate the binding heads of agreement (HoA) that outlined the deal.
The company announced Monday that Chow Tai Fook Enterprises and Far East Consortium — the other stakeholders in the Destination Brisbane Consortium (DBC) — have submitted a formal notice to end the agreement, which will take effect on July 7 unless withdrawn.
The HoA, first disclosed in March, was designed to enable The Star to divest its DBC equity interest and refocus on its Gold Coast assets. Under the agreement, the company would also exit its role as manager of the Queen’s Wharf property upon completion of the transfer. However, the April 30 deadline to finalize long-form transaction documents passed without resolution, allowing either party to exit the deal with five business days’ notice.
The Star hopeful deal can be revived
Despite the notice, The Star stated that it remains open to continuing negotiations in hopes of reviving the deal.
“The Star remains willing to continue negotiations with the Joint Venture Partners to give effect to the DBC transaction,” the company said in its ASX filing.
The breakdown in talks introduces fresh uncertainty around The Star’s strategic repositioning efforts, which also include recent financial injections of AU$133 million from Bally’s Corporation and Investment Holdings, and AU$58 million from the release of Event Centre sale proceeds.
The Queen’s Wharf Brisbane development — a flagship integrated resort project on the Brisbane River — is scheduled to open later this year, though it has faced delays and mounting scrutiny over governance at The Star.
Analysts have viewed The Star’s exit from the Brisbane consortium as key to streamlining its portfolio and stabilizing its balance sheet amid regulatory and financial headwinds.
The company said it would issue further updates if the termination takes effect or if negotiations resume.
The termination notice adds to the company’s ongoing challenges, including a public inquiry into its Sydney casino operations and tighter compliance controls across its portfolio.
